Facebook’s cryptocurrency Libra questioned at US Senate hearing

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Facebook’s cryptocurrency – Libra will let you buy things or send money to people with nearly zero fees, has come under further attack at a US hearing.

The politicians said that the company is “delusional” and non-trusted. They said that they do not trust Facebook to operate a global cryptocurrency.

Facebook executive David Marcus has been questioned by the Senate Banking Committee over FB’s intention to launch its Libra digital currency.

Senator Sherrod Brown said that the company had showed “through scandal after scandal that it doesn’t deserve our trust”.

Before launching a new business model, the tech giant had been advised to clean up its house. Last moth, the company had announced its plan to launch a digital currency, probably by next year.

But, initially, the company had to get the Washington lawmakers on its side. But, several criticisms came soon after the company had revealed its plan to launch Libra, even from President, Donald Trump.

Trump’s last week tweet said that he is not a fan of Bitcoin and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air.

Facebook said that Libra won’t be an investment vehicle and that the company and its partners have no plans to act like a central bank.

Former chairman of the Commodity Futures Trading Commission said in an interview that, “We don’t actually have a regulatory framework that sufficiently addresses the cash market for digital assets that aren’t securities, like bitcoin. We don’t have a comprehensive way of looking at it”.

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